On 25 August 2023, the Dutch Supreme Court essentially confirmed
that parties can agree on their own standard for interpreting the
provisions of an agreement. In this blogpost, Marcel Willems and
Joanne Uiterwijk (Commercial Contracting and Dispute Resolution)
will discuss the Supreme Court's ruling and explain its
importance for anyone drafting contracts.
Facts
In 2008, a couple gets divorced and the District Court orders
the man to pay the woman alimony in the amount of EUR 160 per
month. The man and woman subsequently enter into a settlement
agreement.
In summary, the preamble of the settlement agreement provides
that in the event of a dispute, the competent court must interpret
the provisions of the agreement in accordance with their
grammatical meaning and is not to take into account parties'
intentions (the so-called Haviltex-standard; further explained
below). Thus, the preamble contains its own contractual
interpretation clause.
